Twitter sells MoPub mobile ad network to AppLovin for $ 1.05 billion
Jack Dorsey, CEO of Twitter and Co-Founder and CEO of Square, speaks during the Bitcoin 2021 Cryptocurrency Convention at the Mana Convention Center in Miami, Fla. On June 4, 2021.
Marco Bello | AFP | Getty Images
Twitter wednesday announcement its decision to sell its MoPub mobile ad network to mobile game developer AppLovin for $ 1.05 billion in cash.
Twitter said it made the decision to sell MoPub in order to accelerate the development and growth of its owned and operated revenue products. Twitter said the sale of MoPub was in line with its stated goal of reaching $ 7.5 billion in revenue by the end of 2023.
AppLovin shares rose more than 9% in after-hours trading on Wednesday. Twitter shares rose more than 2%.
âThis transaction strengthens our focus and demonstrates confidence in our revenue product roadmap, accelerating our ability to invest in commodities that position Twitter for long-term growth and best serve the public conversation,â said Jack Dorsey, CEO of Twitter, in a statement.
MoPub generated $ 188 million in revenue for Twitter in 2020, the company said on Wednesday. This represents nearly 5.9% of the company’s advertising revenue in 2020 and just over 5% of its total revenue in 2020.
Twitter said it will provide additional details on the deal’s estimated financial impact when it releases its third-quarter results on October 26.
The MoPub network is used by 45,000 mobile applications and reaches 1.5 billion addressable users, according to the announcement of the AppLovin agreement. The agreement is expected to be finalized in 2022, AppLovin said.
âWe are excited about the opportunity to develop the AppLovin platform and further improve our publisher monetization tools through this strategic transaction,â said Adam Foroughi, CEO of AppLovin. in a report. “We welcome the MoPub team and together we will work diligently to combine the best of MoPub into the AppLovin software platform.”
AppLovin’s business is split between games, which make a large chunk of their money from selling virtual items, and the marketing tools other game developers use for app discovery and promotion.
Founded in 2011, AppLovin initially aimed to help mobile apps be discovered and make money. In 2018, the company raised $ 2 billion from KKR to expand its business into game development, largely through acquisitions. AppLovin has a market cap of nearly $ 29 billion at Wednesday’s close.
Twitter bought MoPub for around $ 350 million in stock in September 2013, just before the company made its public market debut. The purchase was aimed at boosting Twitter’s ability to generate revenue from mobile ads.
This story is developing.